THE American government is hopeful that the African Growth Opportunity Act (AGOA) will be extended when it expires in 2008.

Assistant Secretary of State for African Affairs Walter Kansteiner III said this in Gaborone, Botswana recently in answering questions to journalists during the official dedication of the Southern Africa Global Competitiveness Hub.

Mr Kansteiner, who described AGOA as the first step in a long process, said "AGOA kind of lays the beginning foundation if you will.

"It's a very important foundation and there are real benefits that come immediately with AGOA and that is why we want the extension past 2008 when AGOA must be re-authorised or expires," he said in the latest Washington Line publication.

He said it all depended on his country's legislative body, the Congress to put in place laws that would allow for an extension and expressed optimism that this would happen.

He said the next step was a free trade agreement, an FTA which should be picked from the foundation from AGOA.

"The FTA first of all puts it in virtual perpetuity. It also broadens the goods and services that are covered so you include more than what is in AGOA and that's why it's tough," he said.

Mr Kansteiner said the Southern African Customs Union (SACU) would be the next step for such a free trade act rather than the Southern African Development Community (Sadc).

On Zambia's rejection of genetically modified food (GMOs), he said the issue did not have any negative effects on the bilateral relations between the two countries as the relationship was broader than just the GMO issue.

He said the US was obviously disappointed that the situation prevented it from shipping what it thought was vitally needed food for the humanitarian crisis.

"In our opinion, it was a pity but we have a lot of issues with Zambia. We have a lot of projects and we have to move on and work together for the good of Zambians," he said.